Chip Stocks Fall Despite Bond Yield Relief
On August 19, chip stocks including Intel (INTC) and Advanced Micro Devices (AMD) fell by approximately 4%, while NVIDIA (NVDA) remained unchanged. The decline occurred despite a drop in long-term Treasury yields following increased buybacks of government debt. Broadcom (AVGO) also dropped nearly 5%. Elevated year-to-date gains across chip stocks have led to profit-taking ahead of NVIDIA's upcoming earnings report on August 26. The VanEck Semiconductor ETF (SMH), which tracks the sector, fell by about 1%, masking sharper declines in its top holdings. The broader NASDAQ-100 index was slightly up for the day but failed to support chip stocks due to specific AI hardware positioning across portfolios. NVIDIA appears more resilient due to easing restrictions on H200 chip imports into China and a favorable valuation call from Bank of America analyst Vivek Arya. Aid in NVIDIA's favor includes reports that Chinese companies like ByteDance and Tencent have received limited shipments of its chips, signaling regulatory relaxation. Analysts suggest the current discount for NVIDIA compared to peers may be overestimating risks tied to AI investments.
Tickers: $AMD $AVGO $INTC $NVDA $SMH
Topics: bond_yields semiconductors stock_prices